Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
May 22, 2020 - (Gold Market Wire) - Silver has taken another hit and the power uptrend line is in the rear view mirror. It's a volatile instrument, and there is still money in the bank from the breakout. Those who are more inclined to book profits and trade out should probably do so. The chart is not encouraging.
One of the nice things about the instantaneous communication the internet brings is that it lets you know when a trade has become popular. The whole world has piled into silver recently, including a lot of the funds. But it is the general public, who likes to leverage up and swing for the fences, who always buys the tops. They are fairly easy to recognize on-line as they always leave their rallying cry "This is it !" wherever they go. They have done so again. The screen jockeys and the perms-bulls had risen from their lair once again, assured, (and strangely never discouraged) that the day they have been waiting for for 20 years has finally arrived. Such displays of faith can seem almost noble, but in truth they are sad. They will ride the market down and be forced to cut - and when they do, the coast will be clear to start the next rally, which they will chase at the top, yet again.
So this time around, maybe they could try something different. Let the market wipe itself out. And after it does, chart it properly (that's one of the things we do here) and then find a proper entry point. Ride the rally and cut when the power up trend fails. If you get all sentimental about precious metals just take 5% of your net worth, buy your coins and bars and find something better to do with your time. You are not going to cut it as a trader. Unless you can flip your opinions on a dime when evidence presents, you will always be the mark at the table. People who love PMs are always constrained by one thing - their emotions. Until you control them, and your ego, you will always be amongst the group of people who bought in 2011 and 12...and are still waiting for 'redemption.' It is a bad place to be.
Never Marry the Trade!